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shivkumar (proprietor)     15 September 2010


This is to inform that I have purchased a commercial property from a person 'X' who had in turn purchased the same property from a builder(1st transaction of the property).The person X had informed me that the original title deed of the above property has been lost/misplaced and we had executed sale deed without the original title deed.

I had verified the title of the property and have also checked for the encumbrances on the above property from the concerned registrar office and found that the property was clear.Furthur I had also issued caution notice before the execution of sale deed in 2 leading local newspapers regarding the purchase of the property and had not received any objections.

Recently a co-operative bank has claimed that the person X had borrowed loan from the bank by mortgaging the above property.The bank and the person X had executed a simple mortgage deed(unregistered) for the above loan.

Now the bank is demanding the possession of the property to sell the property.Kindly inform me what to do.


 4 Replies

Bharatkumar (ADVOCATE )     16 September 2010

Now this is a civil matter u contect a civil lawyer for this.

ABHIJEET PARIKH (Bcom LLB MBA)     16 September 2010

u have done proper due diligence before acquiring a property u need to file the stay order against the bank and the party from whom u bought the property show to court with relevant document and newspaper copy that the due diligence is taken care 

after this let the bank prove an unregistered mortgage doc has no value in court of law 

Sri Vijayan.A (Legal Consultant)     20 September 2010

  1. A mortgage without registration is called equitable mortgage.
  2. Equitable mortgage is also valid but inferior to registered mortgage.
  3. A man of ordinary prudence can not find the lien/ charge by the bank over this property
  4. Using this, the seller had acted with criminal intention from the beginning
  5. But u have some breath/ escape as you did all possible searches and made publication
  6. You have acted a person with good faith and paid consideration
  7. So initiate or lodge complaint against the seller

Adv. K.S.A.Narasimha Rao ( )     22 September 2010

Dear Shiv Kumar,

Please try to identify if any other properties available to "X" for taking attachment of the same for recovery of amount paid by you and also file a private criminal complaint against "X" .

Please do join the proceedings before the co-operative Registrar or concerned court where you can file objections for delivery of possession of property you hold. In the said circumstances, the Bank will also register a cheating case against the borrower of selling without notice to the Bank.

If possible try to negotiate with the Bank in giving one time settlment to acquire the property at a reasonable price.

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